Warranty coverage takes effect from the date of closing (or, in a condominium, from the date of available occupancy).  Maximum coverage for a new residence is $150,000.00 (see details in

Deposit coverage begins the moment a deposit is paid. When you buy a new freehold home, you are protected against financial loss, including your deposit, to a maximum of $40,000.00, if the builder does not complete the sale through no fault of the purchaser.

The program warrants that the home is free from defects in materials and workmanship, is fit to live in, and meets the Ontario Building Code requirements for one year from the date that purchaser was entitled to occupy. Homeowners are responsible for notifying both the builder and the Tarion New Home Warranty Program in writing of any defects before the end of the first year. If Tarion does not receive notice in writing within the warranty period, the claim might not be allowed.

For homes enrolled on or after January 1, 1991, the program warrants for two years against:

  • Water seepage through the basement or foundation walls

  • Defects in materials and work including caulking, windows and doors so that the building envelope prevents water penetration

  • Defects in materials and work in the electrical, plumbing and heating delivery and distribution systems

  • Defects in materials and work which result in the detachment, displacement or deterioration of exterior cladding

  • Violations of the Ontario Building Code’s health and safety provisions

Homes enrolled on or after January 1, 1991 are protected for seven years against major structural defects; a major structural defect is defined in the Ontario New Home Warranties Plan Act as any defect in materials or work that results in the failure of a load-bearing part of the home’s structure, or any defect in materials or work that significantly and adversely affects the use of the building as a home.

A builder can extend the closing date up to a total of 120 days at any time prior to closing by giving written notice of the extension. However, if the builder does not give the following written notice of delays, you may be able to claim compensation for out-of-pocket expenses. A claim can only be made when you become the owner.

A builder anticipating a delay in closing of more than 15 days must notify you at least 65 days before the original closing date and set a new closing date. The builder may extend the closing date once by up to 120 days, if you are given written notice at least 65 days before the closing date.

A builder anticipating a delay in closing of no more than 15 days beyond the original or extended date as outlined above must notify you at least 35 days before the original or extended closing date and set a new closing date.

The builder is allowed up to five days grace regarding last-minute closing delays without penalty. Beyond that, any builder who fails to give proper notice will be required to compensate you up to $100 a day for living expenses plus all direct costs caused by the delay, to a maximum of $5,000.

To be compensated, you must complete the purchase. If the builder refuses to close, call your TARION Office for information on how this will affect coverage. Keep your receipts for expenses. Claim forms are available from TARION. You must submit your claim in writing to TARION before the end of the first year warranty period.

There is no compensation for delays caused by events beyond the builder’s control, e.g., strikes, fires, civil insurrection, floods or acts of God, or for delays which are caused by the purchaser.

Be sure you bring any problems to the attention of your builder and TARION in writing before the end of the warranty period. For example, if you took possession of your new home on June 15, 1998, the first, second and seven year warranties expire at midnight on June 14 of the appropriate year. Make a note of when your warranty coverage expires.

If TARION does not receive your notice in writing within the warranty period, your claim cannot be allowed. In your letter, describe the problem and ask the builder to correct it. Remember to include the enrolment number, your complete address, lot and plan numbers. Written notice of any complaint about a repair must be received by TARION within the time period for the repair warranty to apply.

If you have bought a newly constructed unit, you should attend at the property prior to closing to inspect and prepare a list of matters requiring the attention of the builder. Future Homes provides this service to all our Clients. The inspection appointment time must be arranged by you with the builder’s representative. At the time of inspection, you will complete the Certificate of Completion and Possession for delivery by the builder to the Tarion New Home Warranty Program. All items outstanding must be noted. The warranty Certificate issued should be received by you and a copy should be provided to the lawyer prior to the closing of the real estate purchase. Note: Should you omit to note a deficiency at the P.D.I., you may note it on your 30 day report form if submitted within 30 days.